Optimizing Business Exits
Selling a Risk Management and Loss Control Insurance Business
The sale of a risk management and loss control insurance business can be a difficult and trying process. Good advice can be hard to come by, so we've put together a few proven suggestions to help you see your sale through to a profitable conclusion.
If you listen to many entrepreneurs, there never seems to be a good time to put a small business on the market.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a risk management and loss control insurance business.
Laying the Groundwork
Effective risk management and loss control insurance business preparation focuses on communicating value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a risk management and loss control insurance business to the marketplace. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium risk management and loss control insurance business opportunity.
Are You the Right Person to Sell Your Business?
An unassisted business sale is a double-edged sword. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your risk management and loss control insurance business in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. So in many cases, the introduction of third-party opinions regarding value and negotiation parameters is a fundamental requirement for a successful risk management and loss control insurance business sale.
Preparing Your Employees
Business sellers face a dilemma when it comes to their employees. The more people who know that the business is on the market, the riskier the sale becomes. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. So at some point you will have to resign yourself to the idea of telling some or all of your employees that you have listed the risk management and loss control insurance business on the market. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
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